The framework outlines best practice approaches to evaluate the likely effects of a policy change. However, not all policy proposals and decisions have significant impacts that require an IA. Agencies should undertake a level of analysis proportionate to the proposal’s potential impacts.
This includes considering the nature of the policy problem and determining if it is in scope of the framework, identifying the policy objective and potential policy solutions, assessing the likely impacts and stakeholder views, and how to monitor and evaluate the policy once implemented. This is formalised in the 7 IA questions.
The process ensures that all significant regulatory and competition-related policy decisions are supported by an appropriate level of analysis, enabling decision‑makers to make policy decisions based on robust analysis.
Impact analysis steps
The IA approach can be summarised in 5 steps.
Early policy development
Early in policy process, consider the policy problem and objective, and alternative policy options.
Step 1: Preliminary analysis
Assess whether the policy proposal is in scope. That is, any regulatory policy proposals and proposals with material competition impacts. If in scope, assess the proposal against the IA thresholds to determine if the proposal is expected to have moderate or major impacts.
Step 2: Impact analysis
Evaluate the policy proposal using the 7 IA questions, including estimating the regulatory burden. Prepare a Dashboard IA (or a Detailed IA if required by the Prime Minister
or Cabinet).
Step 3: Assess the IA
Agencies assess whether the IA provides sufficient and robust analysis to inform a key decision. Agencies also certify that the IA is sufficient to inform a key decision.
Step 4: Policy decision
The Dashboard (or Detailed) IA is provided to decision-makers to support the key decision.
Step 5: Publication and reporting
After announcement of the policy, the Dashboard (or Detailed) IA is reviewed then published on the OIA website together with the Statement of Sufficiency.